Stocks to buy with Anil Singhvi: Here are Vikas Sethi's top two picks for good returns – GIC Housing Finance and Hindustan Zinc

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Zee Business Managing Editor Anil Singhvi, in the latest episode of ‘Sadabahaar Sethi Saab’ show, talked to market analyst Vikas Sethi and asked him to reveal his top picks that can generate good returns for investors

First Pick: GIC Housing Finance, the target on the share price is Rs 120, stop-loss is Rs 105.

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Vikas Sethi said his first pick is GIC Housing Finance from the housing finance sector. He expects Q4 FY21 results to be good for this company. He said that the stock is available at reasonable valuation when compared to other companies in the Housing Finance Sector. The price to book ratio of the stock is 0.45. Efforts taken by the Government to push the Housing Finance sector by reducing stamp duty, keeping interest rate lower will benefit the Housing Finance sector and companies like GIC Housing Finance. The company paid a dividend of Rs 2. The company recorded profit of Rs 60 cr vs Rs 14 cr (YoY). The target on the share price is Rs 120, stop-loss is Rs 105.

Second Pick: Hindustan Zinc, the target on the stock is Rs 315, stop-loss is Rs 290

Vikas Sethi picked Hindustan Zinc as his second pick. This is World’s No 2 company manufacturing Zinc and lead. It is also World’s 6th largest company mining Silver. Fundamentals of the company are extremely strong and the metal sector is seeing good buying and the sector seems to be in strong uptrend. Silver prices are nearing Rs 70000 levels. Operating profit margins are 40%, Return on Equity is 30%, Debt equity ratio is Nil and the company paid a Dividend of Rs 21.3 2 quarters ago. It is expected that the company will pay a good dividend going forward as well. Hindustan Zinc will come out with Q4 results on Tuesday (27th April) next week. The target on the stock is Rs 315, stop-loss is Rs 290. Q3 FY21 profit was Rs 2200 cr vs Rs Rs 1620 cr (YoY).